TRUSTEE ACT 1925 - SECT 54
Banks, building societies and credit unions
TRUSTEE ACT 1925 - SECT 54
Banks, building societies and credit unions
54 Banks, building societies and credit unions
(1) Where there are more than two trustees or where there are two trustees one
of whom is the NSW Trustee or a trustee company and the trustees by writing
under their hands authorise a bank, building society or credit union--
(a) to
pay bills of exchange drawn upon the banking account of the trustees by two or
more trustees named in that behalf in the authority, or by the NSW Trustee or
a trustee company if one of the trustees and so named in that behalf in the
authority, or
(b) to recognise as a valid endorsement upon any bill of
exchange or promissory note payable to the order of the trustees the
indorsement thereon by two or more trustees named in that behalf in the
authority, or by the NSW Trustee or a trustee company if one of the trustees
and so named in that behalf in the authority, or where the indorsement is for
collection and credit of any account of the trustees with a bank, building
society or credit union, the indorsement thereon by any one or more of the
trustees named in that behalf in the authority,
the bank, building society or
credit union acting in pursuance of the authority shall not be deemed privy to
a breach of trust on the ground only of notice that the persons giving the
authority were trustees, or that the instrument, if any, by which the trust
was created did not contain any express power to give the authority--
Provided that the duration of any such authority shall be limited to a period
not exceeding three months on any one occasion, except where--
(i) the trustee
or one of the trustees named in the authority is the Public Trustee or a
trustee company, or
(ii) the authority is to indorse for collection and
credit of any account of the trustees with a bank, building society or credit
union.
(2) This section shall not affect any question of the liability of any
trustee for breach of trust in giving the authority.
(3) This section applies
only if and as far as a contrary intention is not expressed in the instrument,
if any, creating the trust, and shall have effect subject to the terms of that
instrument and to the provisions therein contained.
(4) This section applies
to trusts created either before or after the commencement of this Act.